Source: Zhitong Finance
$BILIBILI-W (09626.HK)$It surged 8.8% yesterday and continued to rise by more than 5% today; as of press release, it rose 5.09% to HK$103.3, with a turnover of HK$377 million.
According to reports, the company's total annual revenue for Station B reached RMB 22.53 billion in 2023, of which total revenue for the fourth quarter reached 6.35 billion yuan, gross margin increased to 26.1% for 6 consecutive quarters, and adjusted net loss narrowed sharply by 58% year-on-year. The net operating cash inflow for the fourth quarter was 640 million yuan, and positive operating cash flow was achieved throughout the year. Chairman and CEO Chen Rui anticipates that the company will improve its adjusted operating profit in the third quarter of this year and start making profits.
Galaxy Securities believes that the company has recently achieved remarkable results in cost reduction and efficiency. Looking forward to the future, the bank believes that Station B will continue to maintain healthy growth in the community ecosystem and continue to promote the company's diversified business process based on users. Yamato said that Bilibili's advertising business forecast for this year was slightly raised, believing that the AIGC (AIGC) category has potential for further growth and will increase more advertising inventory this year. The game business remained weak in the first half of the year, but there may be a turnaround at the end of the second season or the beginning of the third season.
Furthermore, several major banks have recently released research reports, and it is expected that Station B's first-quarter results will meet market expectations and give it a “buy” rating. Among them, Bank of America has a “buy” rating for Bilibili. The target ADR price is 17 US dollars, and revenue for the first quarter is expected to increase 10% year-on-year to 5.6 billion yuan. Due to the increase in advertising revenue, Yamato raised Bilibili's revenue forecast for this year and next two years by 2%, and the profit forecast by 4%-5%, as high-profit advertising contributions are likely to continue to increase.
Editor/jayden